Panetta Urges Beijing to Resolve Island Spat

BEIJING—U.S. Defense Secretary Leon Panetta met Wednesday with China's presumed next leader and urged a peaceful solution to a territorial dispute with Japan, an issue that a Chinese official said could damage coming trade talks and economic ties between the two Asian powers.

It also was the first public international meeting for Chinese Vice President Xi Jinping, who is widely expected to become president in a Chinese leadership transition, after he had canceled several others in recent weeks. His appearance, following...